Why Cruise Line Stocks Cratered on Friday
Shares of major cruise-line operators plunged again on Friday, as companies and investors officially found out they wouldn't be eligible for recovery funds. Shares of Carnival Corp. (NYSE: CCL) fell as much as 21% and at the time of writing, 3:40 p.m. EDT, shares are down 18.2%. Norwegian Cruise Line Holdings (NYSE: NCLH) fell 23.4% midday and is now down 23.3%. Royal Caribbean Cruises (NYSE: RCL) dropped as much as 19.2% and is now down 14.8%.
The big news is that language in the stimulus package that passed Congress today explicitly excludes these cruise lines from relief. None of the three companies are incorporated in the U.S. -- Carnival is incorporated in Panama, Royal Caribbean in Liberia, and Norwegian Cruise Line in Bermuda -- and that's a sticking point for qualifying for relief.
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Source Fool.com
